Exam 14: Oligopoly: Firms in Less Competitive Markets

In recent years online bookseller Amazon.com has lowered its profits by offering some of its customers free shipping and building more warehouses to hold its inventories.Which of the following explains Amazon.com's actions?

Collusion occurs when

Which of the following is an example of implicit collusion?

What do Wal-Mart,the Microsoft Corporation,and the Dell computer company have in common?

The Brooks Appliance Store and the Lefingwell Appliance Store (both are located in the same city)each sell an identical washer-dryer.The owner of each store considered offering the washer-dryer for $700,but decided on a price of $500.If this is a Nash equilibrium we can conclude that

A set of actions that a firm takes to achieve a goal is the definition of a

Which of the following is not one of the five competitive forces?

Which of the following explains why two firms,Apex and Bongo,would engage in implicit collusion,rather than explicit collusion?

On January 2,1971,all cigarette advertising was banned on U.S.television and radio stations.Did this ban likely increase or decrease the profits of cigarette companies in 1971? Briefly explain.

Figure 14-1 A few years ago Netflix (N)pioneered an online DVD rental service.Blockbuster (B),a brick and mortar DVD/video rental company,waited until Netflix had been in business for over a year before deciding whether to establish its own online rental service.At this point,Netflix had to decide whether or not to lower its subscription price in order to deter Blockbuster's entry into the market.Figure 14-1 shows the decision tree for the Netflix-Blockbuster entry game. -Refer to Figure 14-1.If Netflix lowers its price will this deter Blockbuster from setting up an online DVD rental service?

The people firms hire to attempt to convince state legislators and members of Congress to pass laws that are favorable to the economic interests of the firms are called

Explain why member firms of a cartel like OPEC have incentives to agree to a low cartel production level and then produce more than its quota.

An oligopoly between two firms is called

A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is

The fraction of an industry's sales that are accounted for by the largest firms is called

A patent is an example of

Most economists are concerned about entry barriers.Why is this so important to them?

Which of the following is not a barrier to entry?

An agreement among firms to charge the same price or otherwise not to compete is called

Because of the shortcomings of concentration ratios,some economists prefer another measure of competition called